BILL NUMBER: SB 898 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 31, 2016
AMENDED IN SENATE APRIL 25, 2016
AMENDED IN SENATE APRIL 4, 2016
INTRODUCED BY Senator Nguyen
(Principal coauthors: Assembly Members Travis Allen and Mullin)
(Coauthors: Senators Allen, Berryhill, and Stone)
JANUARY 21, 2016
An act to add Section 6358.6 to the Revenue and Taxation Code,
relating to taxation.
LEGISLATIVE COUNSEL'S DIGEST
SB 898, as amended, Nguyen. Sales and use taxes: exemption: animal
blood.
Existing sales and use tax laws impose a tax on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on the storage, use, or other
consumption in this state of tangible personal property purchased
from a retailer for storage, use, or other consumption in this state.
Existing law provides for various exemptions from those taxes,
including an exemption for certain sales of human blood and
containers thereof.
This bill would exempt from those taxes the gross receipts from
the sale in this state of, and the storage, use, or other consumption
in this state of, animal whole blood, plasma, blood products, and
blood derivatives, sold by a nonprofit animal blood banking
business for use in the cure, mitigation, treatment, or
prevention of injury or disease in animals pursuant to a specified
state law.
The bill also would require the State Board of Equalization to
cancel any notice of determination and any related penalties and
interest, and to not issue any notice of determination, with respect
to the sale in this state of, and the storage, use, or other
consumption in this state of, animal whole blood, plasma, blood
products, and blood derivatives, sold by a nonprofit animal
blood banking business for use in the cure, mitigation,
treatment, or prevention of injury or disease in animals pursuant to
a specified state law. The bill would make findings regarding the
public purpose of this provision.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
cities and counties to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and existing laws authorize
districts, as specified, to impose transactions and use taxes in
accordance with the Transactions and Use Tax Law, which generally
conforms to the Sales and Use Tax Law. Amendments to the Sales and
Use Tax Law are incorporated into the local tax laws.
Existing law requires the state to reimburse cities and counties
for revenue losses caused by the enactment of sales and use tax
exemptions.
This bill would provide that, notwithstanding these provisions, no
appropriation is made and the state shall not reimburse cities and
counties for sales and use tax revenues lost by them pursuant to this
bill.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6358.6 is added to the Revenue and Taxation
Code, to read:
6358.6. There are exempted from the taxes imposed by this part
the gross receipts from the sale in this state of, and the storage,
use, or other consumption in this state of, animal whole blood,
plasma, blood products, and blood derivatives, sold by a
nonprofit animal blood banking business for use in the cure,
mitigation, treatment, or prevention of injury or disease in animals
pursuant to Section 9241 of the Food and Agricultural Code.
SEC. 2. The Legislature finds and declares that animals have
emergencies and illnesses that present a critical need for blood
products, and that in enacting this act it is in the public interest
to relieve from liability those persons
nonprofit animal blood banking businesses that have not paid
sales tax or collected sales tax reimbursement on their sales of
animal blood products, thereby preventing undue hardship on those
persons nonprofit animal blood banking
businesses that offer this vital life service.
SEC. 3. The State Board of Equalization shall cancel any notice of
determination and any related penalties and interest, and shall not
issue any notice of determination, with respect to the sale in this
state of, and the storage, use, or other consumption in this state
of, animal whole blood, plasma, blood products, and blood
derivatives, sold by a nonprofit animal blood banking business
for use in the cure, mitigation, treatment, or prevention of
injury or disease in animals pursuant to Section 9241 of the Food and
Agricultural Code.
SEC. 4. The Legislature finds and declares that the addition of
Section 3 of this act serves a public purpose as described in Section
2 of this act, and does not constitute a gift of public funds within
the meaning of Section 6 of Article XVI of the California
Constitution.
SEC. 5. Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse cities and counties for any sales and use tax revenues lost
by them under this act.